Draft Assessment Order passed u/s 144B to be treated as SCN; assessee can file objections against said order

INCOME TAX : Where assessee filed writ challenging draft assessment order dated 23-4-2021 for assessment year 2017-18, revenue was directed to treat impugned draft assessment order as show cause notice-cum-draft assessment order, passed under section 144B and grant assessee liberty to file reply/objections to said order

from www.taxmann.com Latest Case Laws https://ift.tt/3y56FgT

CCI declines to stop provision of co-location facility provided by NSE to stock brokers

COMPETITION LAWS : Provision of co-location facility by NSE which help increase volumes of trades manifold and provides liquidity to investors could not be stopped as there was no violation of section 4 and SEBI also did not find any instance of fraudulent conduct in violation of SEBI (PFUTP) Regulations, 2003 in provision of co-location facility

from www.taxmann.com Latest Case Laws https://ift.tt/2TjGzI4

CCI declins to stop provision of co-location facility provided by NSE to stock brokers

COMPETITION LAWS : Provision of co-location facility by NSE which help increase volumes of trades manifold and provides liquidity to investors could not be stopped as there was no violation of section 4 and SEBI also did not find any instance of fraudulent conduct in violation of SEBI (PFUTP) Regulations, 2003 in provision of co-location facility

from www.taxmann.com Latest Case Laws https://ift.tt/2UeauS4

Co. couldn’t be debarred from launching a new debt scheme merely because it chose to wound up six schemes: SAT

COMPANY LAW/SEBI : Where appellant decided to wind up six debt schemes and SEBI by impugned order held that appellant had violated certain provisions of SEBI (Mutual Funds) Regulations, 1996 and circulars issued by SEBI in relation to management of six debt schemes and, therefore, appellant had been directed to refund investment management and advisory fees alongwith interest and appellant had been prohibited from launching new debt schemes for a period of two years,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315676/co-couldn’t-be-debarred-from-launching-a-new-debt-scheme-merely-because-it-chose-to-wound-up-six-schemes-sat.aspx

Reassessment on basis of info. received from investigation wing that assessee booked bogus exp. is valid: HC

INCOME TAX : Where Assessing Officer after receiving information from Investigation Wing that assessee had booked bogus expenses in names of certain entities, verified return of assessee and observed that expenses were inflated by assessee by booking bogus expenses without receiving any actual goods/services, reopening of assessment was justified

from www.taxmann.com Latest Case Laws https://ift.tt/35YgWzs

Business income to be computed by using conversion rate existing on last day of previous year even if TDS is deductible

INCOME TAX : Correct procedure for calculating receipts in case of income from business and profession in case of currency conversion is Explanation 2(c) to rule 115(1) without taking into account proviso to rule 115(1)

from www.taxmann.com Latest Case Laws https://ift.tt/3jts3se

NRIs must obtain registration under 'Investment advisory' regulations for offering advisory services

The SEBI has issued informal guidance with the regard to registration in 'Investment advisory' (IA) regulation. It has clarified that NRI or POI intends to offer investment advisory to clients in India needs to take registration under IA regulations. In case NRI or POI wants to join any non-individual IA as PAA, then non- individual IA is required to comply with IA regulations.

from taxmann.com News https://ift.tt/3dpr4Fh

HC justified acquitting of an accused u/s 138 as complainant failed to prove cheque was issued to discharge liability

FEMA amp; BANKING INSURANCE : Where complainant filed a case under section 138 against accused on ground that cheque issued by accused to discharge his liability towards Joint work executed by Complainant with accused had been dishonoured however, he failed to produce work order against which he and accused had entered into agreement to execute such work, Trial Court was justified in acquitting accused for offence punishable under section 138

from www.taxmann.com Latest Case Laws https://ift.tt/3x6dyhR

The conduct of the Tamil Film Producers Council in issuing boycott calls to its members was anti-competitive: CCI

COMPETITION LAW : Where OPs, association of film producers, collectively boycotted production, supply, exhibition, distribution and technical development of Tamil and Telugu films in State of Tamil Nadu and refused to deal with several stakeholders in film industry in Tamil Nadu,

from www.taxmann.com Latest Case Laws https://ift.tt/3hgzgZQ

CA exams to be held from July 05, 2021: Apex Court

The Apex Court has shown green light to the Institute of Chartered Accountancy of India for conducting the CA examination from July 05, 2021. However, it stated that it will hear the petitions Seeking Postponement of CA Examination/ Opt-out Options/Extra Chances/More Exam Centres whereas it will not pass any directions to postpone the Chartered Accountant (CA) examinations 2021 scheduled to commence in July.

from taxmann.com News https://ift.tt/3jqvuzS

Reassessment framed in name of one legal heir is invalid; ITAT directs AO to issue notice to all legal heirs: ITAT

INCOME TAX : Where assessee died in 2010 but reassessment notice, in respect of non-disclosure of capital gain by assessee on sale of immovable properties in 2014, was served upon three legal heirs of assessee out of seven and assessment had been framed in name of one heir of assessee, in view of principle laid down by Supreme Court that each and every one of legal representatives of deceased, where these are several, is brought on record for proper constitution of suit or appeal,

from www.taxmann.com Latest Case Laws https://ift.tt/3x4jojz

AO rightly taxed fake agricultural income disclosed by student in ITR to get education loan: ITAT

INCOME TAX : Where assessee had wrongly claimed income in question as agricultural income and claimed same as exempt, Assessing Officer was justified in treating said income as income from other sources

from www.taxmann.com Latest Case Laws https://ift.tt/3x3QujT

AO rightly taxed fake agricultural income disclosed on advice of tax practitioner : ITAT

INCOME TAX : Where assessee had wrongly claimed income in question as agricultural income and claimed same as exempt, Assessing Officer was justified in treating said income as income from other sources

from www.taxmann.com Latest Case Laws https://ift.tt/3jpfPR6

ITAT quashes sec. 69 addition made on basis of agreement as transaction referred in it was not materialized

INCOME TAX : Where purported transaction of land between assessee-seller and buyer did not materialise and land was not transferred to said buyer, addition under section 69 on basis of seized agreement was not justified

from www.taxmann.com Latest Case Laws https://ift.tt/2UNoSBg

Finance Minister announces 1.1 lacs crore loan guarantee scheme for COVID affected sectors

The Finance Minister has announced Rs 1.1 lakh crore loan guarantee scheme for COVID-affected sectors. The scheme would include Rs 50,000 crore loan to the health sector aimed at scaling medical infrastructure targeting underserved areas. The scheme would entail guarantee cover for expansion and new projects related to health and medical infrastructure in cities other than eight metropolitan cities.

from taxmann.com News https://ift.tt/3y37jv9

Key highlights of FM Nirmala Sitharaman’s press conference to boost Covid-19 affected sectors

The Union Finance Minister Nirmala Sitharaman addressed a press conference at 3 pm on Monday, 28 June 2021 wherein, the FM announced various reliefs for sectors that were badly affected by second wave of Covid -19 Pandemic. The second wave of coronavirus pandemic has severely hit the country. As a result, several states announced local lockdowns to prevent virus from spreading and lockdown critically disturbed the sectors such as tourism, hospitality sector, Healthcare, and MSMEs.

from taxmann.com News https://www.taxmann.com/research/direct-tax-laws/top-story/222330000000021430/key-highlights-of-fm-nirmala-sitharaman’s-press-conference-to-boost-covid-19-affected-sectors.aspx

CCI prima facie finds Google dominant in relevant market for smart TV device operating systems, orders probe

COMPETITION LAW : In view of fact that market share of Google's Android TV operating system is almost 90%, Google is dominant in relevant market for licensable smart TV device operating systems in India and since prima facie mandatory preinstallation of all Google Applications under Television App Distribution Agreement (TADA) amounts to imposition of unfair condition on smart TV device manufacturers and thereby in contravention of Section 4(2)(a)(i) of Competition Act, 2002,

from www.taxmann.com Latest Case Laws https://ift.tt/36b9z81

Generating surplus can’t be a sole ground to deny Sec. 10(23C)(vi) approval to an educational institute: HC

INCOME TAX : Where main object of petitioner indicated that it was in field of education and Articles of Association of petitioner did not allow an interference of profit motive but clearly indicated that surplus generated by petitioner was to be ploughed back, denial of approval to petitioner under section 10(23C)(vi) was not justified

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315606/generating-surplus-can’t-be-a-sole-ground-to-deny-sec-1023cvi-approval-to-an-educational-institute-hc.aspx

Claim of debenture trustee being a secured creditor would prevail over claim of flat purchasers under RERA: Bombay HC

COMPANY LAW/RERA : Dues payable by a promotor of a real estate project to flat purchasers under orders passed under the provisions of RERA cannot be governed by Section 169(1) of Maharashtra Land Revenue Code, 1966 ("MLRC")

from www.taxmann.com Latest Case Laws https://ift.tt/3x1487n

SEBI issues discussion paper on review of delisting framework pursuant to open offer

Considering the implications faced by the market participants including the investors, promoters and listed companies, The market regulator, SEBI has issued Discussion Paper Review of delisting framework pursuant to open offer. The objective of this discussion paper is to seek comments / views from the public on the proposed new framework.

from taxmann.com News https://ift.tt/3hfuNGC

A kind gesture from CBDT: Extension in due-dates and tax exemption for compensation

The CBDT has recently extended the due dates for certain compliances and has also announced to provide tax exemption for the expenditure incurred by the taxpayers on COVID-19 treatment. The impact of new notifications and circular on various time barring dates and certain compliance of Income-tax Act are discussed in this article.

from taxmann.com News https://ift.tt/3jfWUrX

Reassessment based on info. received from investigation wing valid if assessee failed to disclose true amp; correct facts

INCOME TAX : Where assessee was aware that transaction with company 'A' was not business transaction but in form of bogus purchase, however, failed to disclose true and correct facts at relevant time, Assessing Officer was entitled to initiate reassessment proceedings on basis of tangible material which came into his hands through investigation wing which helped to expose untruthfulness of entry of purchase made in books of account

from www.taxmann.com Latest Case Laws https://ift.tt/3h9z6Dy

SC refuses to interfere with SAT’s order that upheld the imposition of penalty by NSE on stockbroker @ 15% of profit earned

COMPANY LAW/SEBI : Order of SAT that imposition of penalty by NSE on appellant-stock broker at rate of 15 per cent of profit earned by an appellant through non-genuine trades was in accordance with applicable law, could not be interfered with

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197945/sc-refuses-to-interfere-with-sat’s-order-that-upheld-the-imposition-of-penalty-by-nse-on-stockbroker-15-of-profit-earned.aspx

SC refuses to interfere HC’s order that upheld imposition of penalty by NSE on stock broker @ 15% of profit earned

COMPANY LAW/SEBI : Order of High Court that imposition of penalty by NSE on appellant-stock broker at rate of 15 per cent of profit earned by an appellant through non-genuine trades was in accordance with applicable law, could not be interfered with

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197945/sc-refuses-to-interfere-hc’s-order-that-upheld-imposition-of-penalty-by-nse-on-stock-broker-15-of-profit-earned.aspx

ICSI issues guidance note on CSR

The Institute of Company Secretaries of India has issued guidance note on Corporate Social Responsibilities. In this guidelines provisions related to Business Responsibility Reports by Listed Companies, CSR in Insurance Companies, CSR in Banking Companies, CSR and Sustainable Development Goals, CSR and Corporate Governance and so on have been discussed in detail.

from taxmann.com News https://ift.tt/35Sq60o

Generating surplus can’t be a sole ground to deny Sec. 10(23C)(iv) approval to an educational institute: HC

INCOME TAX : Where main object of petitioner indicated that it was in field of education and Articles of Association of petitioner did not allow an interference of profit motive but clearly indicated that surplus generated by petitioner was to be ploughed back, denial of approval to petitioner under section 10(23C)(iv) was not justified

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315606/generating-surplus-can’t-be-a-sole-ground-to-deny-sec-1023civ-approval-to-an-educational-institute-hc.aspx

Petition seeking quashing of proceeding for cheque dishonour only on technical ground was to be quashed: HC

FEMA amp; BANKING: Where petitioner-director filed petition seeking quashing of proceedings under section 138 of Negotiable Instruments Act on technical ground that complaint was not made against juristic person, contention of petitioner could not be accepted and petition was to be rejected.

from www.taxmann.com Latest Case Laws https://ift.tt/3ddbmx5

Exp. incurred prior to obtaining IRDA licence to conduct insurance business is allowable as business exp.: Delhi HC

INCOME TAX : Where assessee prior to obtaining IRDA license to conduct insurance business had acquired necessary wherewithal and physical infrastructure for carrying on its business and was only waiting for approval of its application for commencement, expenditure incurred between setting up and commencement of business was to be allowed as business expenditure

from www.taxmann.com Latest Case Laws https://ift.tt/3jd53O0

ITAT slam AO for initiating reassessment on reason that assessee didn't file ITR if same was duly filed

INCOME TAX : Where very reason for reopening assessment that assessee had not filed return of income was incorrect and Assessing Officer had reopened assessment without ascertaining whether assessee had filed return or not, reopening of assessment was not valid and was to be quashed and set aside

from www.taxmann.com Latest Case Laws https://ift.tt/35RJZ7K

Second proviso to sec. 40(a)(i) providing relief from being an assessee-in-default has retrospective effect

INCOME TAX : Second proviso to section 40(a)(i) inserted with effect from 1-4-2020 is curative in nature and has retrospective effect

from www.taxmann.com Latest Case Laws https://ift.tt/2SYlTWa

IFSCA constitutes committee for development of avenues for Ship Financing and Leasing in IFSC

The International Financial Services Centres Authority (IFSCA) has constituted a committee to examine global best practices in ship financing and leasing, identify opportunities and devise a roadmap to enable such activities from GIFT IFSC. This committee will be chaired by Ms. Vandana Aggarwal, former Senior Economic Advisor, Government of India.

from taxmann.com News https://ift.tt/3xSI0vK

ICSI extends ECSIN AMNESTY SCHEME, 2021 till June 30, 2021

In view of the requests of the members of ICSI to extend the ECSIN Amnesty Scheme, persisting situations in the country due to COVID-19 and various practical difficulties being faced by the members, the ICSI has decided to extend the ECSIN Amnesty Scheme, 2021 till June 30, 2021. The Institute has also advised members that it is the last opportunity to avail benefit under the ECSIN Amnesty Scheme, 2021.

from taxmann.com News https://ift.tt/3jdkpSk

Key Impact of the new Companies (Accounting Standard) Rules, 2021

The MCA vide Notification dated 23 June 2021 has issued new Companies (Accounting Standard) Rules, 2021 in consultation with the National Financial Reporting Authority (NFRA). The Rules states that an existing company while was previously not a SMC and subsequently becomes SMC shall not be eligible to avail the exemptions/ relaxations available in the standards for SMC until it continues to remain a SMC for two consecutive accounting periods.

from taxmann.com News https://ift.tt/2U5FFPm

Sentence awarded in default of payment of compensation cannot be directed to run concurrently: HC

FEMA amp; BANKING : Sentence awarded in default of payment of fine/compensation cannot be directed to run concurrently and, therefore, request of accused who had defaulted in payment of fine for his release in two complaints for dishonour of cheques was to be rejected.

from www.taxmann.com Latest Case Laws https://ift.tt/3vRRk1F

MCA notifies new Companies (Accounting Standard) Rules, 2021 effective from 1st April 2021 amp; onwa

The Ministry of Corporate Affairs (MCA) has notified Companies (Accounting Standard) Rules, 2021 for non-IndAS companies which shall be applicable for accounting period(s) commencing on or after 1st April 2021. The Rules incorporate the Accounting Standards and lay down the criteria for exemptions/ relaxations for Small and Medium Sized Companies (SMCs).

from taxmann.com News https://ift.tt/3wUNRAC

ICSI further extends UDIN AMNESTY SCHEME, 2021 till June 30, 2021

In view of the requests of the members of ICSI to extend the Amnesty Scheme, persisting situations in the country due to COVID-19 and various practical difficulties being faced by the members, the ICSI has decided to extend the UDIN Amnesty Scheme, 2021 till June 30, 2021. The Institute has also advised members that it is the last opportunity to avail benefit under the UDIN Amnesty Scheme, 2021.

from taxmann.com News https://ift.tt/3wOCev4

No sec. 263 revision if AO duly verified purchase/sale of shares before forming the opinion that transaction was genuine: ITAT

INCOME TAX : Where Assessing Officer had called for and verified all details and documents in connection with purchase and sale of shares in question and after examining same, had taken a possible view that transactions were genuine, revision of assessment order under section 263 by Commissioner being bad in law was to be quashed and set aside

from www.taxmann.com Latest Case Laws https://ift.tt/2Un9Guf

Reassessment justified as assessee failed to submit evidence and source of income with regards to cash deposits: HC

INCOME TAX : Where Assessing Officer issued reopening notice against assessee on ground that an information was received from NMS (Non filler monitoring system) that assessee had received cash deposits of certain amount in a bank account but had not disclosed same in its return, since assessee had failed to submit supporting evidences and source of income with regard to said cash deposits, impugned reopening notice issued against assessee was justified

from www.taxmann.com Latest Case Laws https://ift.tt/3zSR85v

Trust eligible for exemption from assessment year following FY in which application for registration is made: ITAT

INCOME TAX : Where once Commissioner (Exemptions) is satisfied about objects and genuineness of activities of trust and sufficient compliance of other law for time being in force as are material for purpose of achieving its objects, provisions of sections 11 and 12 shall apply from assessment year following financial year in which application seeking registration under section 12AA was made

from www.taxmann.com Latest Case Laws https://ift.tt/2TYrcFa

TDS rightly deducted according to tax rate prescribed by DTAA as sec. 206AA doesn’t override sec. 90: ITAT

INTERNATIONAL TAXATION : Section 206AA does not override provision of section 90 and, thus, TDS had been rightly deducted by assessee on payment made to non-resident by applying tax rate prescribed under DTAA and not as per section 206AA

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314241/tds-rightly-deducted-according-to-tax-rate-prescribed-by-dtaa-as-sec-206aa-doesn’t-override-sec-90-itat.aspx

AO can't make additions merely by referring to information available in Form 26AS: Kolkata ITAT

INCOME TAX : Where difference between amount shown as turnover by assessee and as reflected in Form 26AS took place due to wrong data entry/information and lack of corresponding services by deductee to deductor, Form 26AS alone could not lead to addition of income

from www.taxmann.com Latest Case Laws https://ift.tt/3xLR5Xm

ITAT remanded matter to bring on record cogent material to prove that prejudice was cause to revenue

INCOME TAX : Where Assessing Officer noted that there was difference between contractual receipts declared by assessee-company in its books of account from a company (Alstom) for previous year 2014-15 and income as was reflected in Form No. 26AS paid by Alstom to assessee for previous year 2014-15 leading to a differential,

from www.taxmann.com Latest Case Laws https://ift.tt/3zOyfRc

AO can't make additions by mere referring information available in Form 26AS: Kolkata ITAT

INCOME TAX : Where difference between amount shown as turnover by assessee and as reflected in Form 26AS took place due to wrong data entry/information and lack of corresponding services by deductee to deductor, Form 26AS alone could not lead to addition of income

from www.taxmann.com Latest Case Laws https://ift.tt/3j1xzSw

Exp. incurred before launch of physical trading outlet allowable as assessee had set-up its business: Delhi HC

INCOME TAX : where assessee - Company was ready to carry on business in previous year, it could safely be concluded that business had been set-up and, therefore, expenditure incurred prior to launch of physical trading outlet would be allowable

from www.taxmann.com Latest Case Laws https://ift.tt/35G0d3P

Kerala HC permits assessee to pre-deposit amount for entertaining appeal, quashed order of rejection of appeal

EXCISE/ST/VAT : Where assessee against order of Adjudicating Authority filed appeal and Commissioner (Appeals) rejected appeal because of non-deposit of amount required for entertaining appeal as per provisions of section 35F, assessee was to be permitted to deposit amount as envisaged by section 35F towards pre-deposit for entertaining its statutory appeal

from www.taxmann.com Latest Case Laws https://ift.tt/3d04zXi

Provisions of Sec. 171 will not apply if a Hindu family was never assessed as a HUF: Madras HC

INCOME TAX : Where a Hindu family was never assessed as a HUF, Section 171 will not apply even when there is a division or partition of property which does not answer to definition of "partition" in Explanation to Section 171

from www.taxmann.com Latest Case Laws https://ift.tt/3d2hic1

HC upholds prohibitory order against Co. for accepting deposit without obtaining registration u/s 45-IA of RBI Act

FEMA amp; BANKING : Where petitioner company had not obtained certificate of registration under section 45-IA of RBI Act, 1934, company could not be allowed to run activities by accepting deposit etc., and, therefore, prohibitory order passed by authority in pursuance to raid/enquiry conducted by concerned authority could not be faulted with

from www.taxmann.com Latest Case Laws https://ift.tt/3wWMDoo

HC stayed faceless assessment order as Co. failed to collect requisite doc. due to lockdown for filing objection

INCOME TAX : Where assessee challenged assessment order and demand of notice on ground that it could not file objections to show cause notice-cum-draft assessment order in view of lockdown in Delhi and so it should be granted one more opportunity to file objection against notice-cum-draft assessment order, notice was issued to revenue and meanwhile assessment order as well as notice of was to be stayed ; matter was to be listed on 17-8-2021

from www.taxmann.com Latest Case Laws https://ift.tt/3qmjuAV

Benefit of RFCTLARR Act cannot be extended to land acquired under NH Act; compensation was liable to tax: ITAT

INCOME TAX : Land of assessee was compulsorily acquired by Government under the National Highway Act, 1956 and assessee claimed exemption from long term capital gains arising from compensation received under Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act).

from www.taxmann.com Latest Case Laws https://ift.tt/3vAoqTH

MCA notifies amendments in 21 Indian Accounting Standards (Ind AS) with immediate effect

The Ministry of Corporate Affairs (MCA) in consultation with the National Financial Reporting Authority (NFRA) has notified amendments to twenty one Indian Accounting Standards (Ind AS) including Ind AS 104, Ind AS 107, Ind AS 109, Ind AS 115, Ind AS 116, Ind AS 38, etc. The new Companies (Ind AS) Amendment Rules, 2021 shall come into force from 18 June, 2021.

from taxmann.com News https://ift.tt/3zBxYkv

SEBI rightly cancelled registration of stock broker who was engaged in synchronised trades in large volume: SAT

COMPANY LAW/SEBI: Where appellant-broker was engaged in circular and synchronized trades in large amount and had falsified records by using fictitious contract notes, SEBI had rightly cancelled certificate of registration granted to appellant as a stock broker

from www.taxmann.com Latest Case Laws https://ift.tt/35CAVDu

SEBI's rightly cancelled registration of stock broker who was engaged in synchronised trades in large volume: SAT

COMPANY LAW/SEBI: Where appellant-broker was engaged in circular and synchronized trades in large amount and had falsified records by using fictitious contract notes, SEBI had rightly cancelled certificate of registration granted to appellant as a stock broker

from www.taxmann.com Latest Case Laws https://ift.tt/3gKwqfh

Issue related to bogus shares considered during original assessment can't be taken again during reassessment

INCOME TAX : Where issue of bogus share capital and share premium received by assessee during year under consideration which included sum received from 'S' was considered by Assessing Officer under section 68 at original assessment stage, same amount cannot be brought to tax once again in reassessment proceedings

from www.taxmann.com Latest Case Laws https://ift.tt/3iXj2Hp

Proviso to Sec. 2(15) not applicable just because trust incidentally involves carrying on commercial activities: ITAT

INCOME TAX: Newly inserted proviso to section 2(15) will not apply in respect of first three limbs of section 2(15), i.e., relief of poor, education or medical relief and, consequently, where purpose of a trust or institution is relief of poor, education or medical relief, it will constitute 'charitable purpose' even if it incidentally involves carrying on of commercial activities

from www.taxmann.com Latest Case Laws https://ift.tt/3xyNuMg

No tax on housewives who deposited less than Rs. 2.50 lakhs cash during demonetization : Agra ITAT

INCOME TAX : Section 69A - Cash deposit during demonetization - Assessment Year 2017-18 - During period of demonetization, assessee, a housewife, deposited cash of Rs. 2,11,500 in her bank account - During course of scrutiny assessment, she was asked to explain source of deposit - She submitted that she has no business activities and she only earns income from interest on her saving - The Assessing Officer made addition of total amount deposited in bank account - On appeal,

from www.taxmann.com Latest Case Laws https://ift.tt/3wDXyn0

Establishment of actual and physical export of goods is substantial condition to claim refund of CENVAT Credit

EXCISE/ST/VAT : Where goods have been supplied to a project awarded under International Competitive Bidding (ICB), treating such supplies as deemed exports, refund of accumulated credit in terms of Rule 5 of CENVAT Credit Rules, 2004 is admissible only, if person claiming such refund is able to establish actual and physical export of goods cleared by him for export under bond or against a letter of undertaking. These conditions are substantial and in case of non-fulfilment of same,

from www.taxmann.com Latest Case Laws https://ift.tt/2THfTkC

ITAT condoned delay in filing miscellaneous application as there was reasonable course for non-appearance

INCOME TAX : Where previous tax consultant of assessee had not attended tax matter satisfactorily and new tax consultant had obtained various documents, and that these circumstances and his ill health caused delay in filing Miscellaneous Application against ex parte order passed on account of non-prosecution, keeping in view of rule 24 of Income-tax Appellate Tribunal, 1963, delay in filing Miscellaneous Application was to be condoned

from www.taxmann.com Latest Case Laws https://ift.tt/3gBIXCX

PMLA-AT grants ad-interim stay on attachment order against properties of co. in which appellant were directors

FEMA, INSURANCE amp; BANKING : Where properties of company of which appellants were directors were attached under PMLA by impugned order and appellants were asked to vacate properties and handover possession of same to ED, orders of ad-interim stay on operation of impugned order for some of properties was to be granted as prayed by appellants

from www.taxmann.com Latest Case Laws https://ift.tt/2TIUF5I

Trade discount given by assessee dealing with its vendors on P2P basis couldn’t be treated as commission

INCOME TAX : Trade discount given by assessee, engaged in business of publishing and selling newspaper, to newspaper vendors and advertising agencies was not in nature of 'commission' and no TDS was to be deducted under section 194H on same

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198225/trade-discount-given-by-assessee-dealing-with-its-vendors-on-p2p-basis-couldn’t-be-treated-as-commission.aspx

Excess share premium not taxable merely because assessee failed to file valuation report during original assessment

INCOME TAX : Where assessee company issued shares at premium and had filed valuation report of shares from independent Chartered Accountant as well as from statutory auditor of company which was based on assets of company and said report was also supported by valuation report of Chartered Engineer, provisions of section 56(2)(viib) could not be invoked to tax share premium collected by assessee merely for reason that such valuation report was not filed at time of original assessment proceedings

from www.taxmann.com Latest Case Laws https://ift.tt/3gJFSzG

Validity of Udyog Aadhaar Memorandum extended from 31 March, 2021 to 31 December, 2021

Considering the hardships faced by MSMEs during the prevailing COVID-19 situation and the representations received from the various MSME associations, financial institutions and Government departments dealing with the interest of MSME Sector, the Govt. has decided to extend Validity of Udyog Aadhaar Memorandum from 31st March, 2021 to 31stDecember, 2021

from taxmann.com News https://ift.tt/3zChM2b

HC directed TRO to lift attachment over property as Co. was required to deposit tax under 'Vivad se Vishwas'

INCOME TAX : Where two properties were attached against outstanding demand of tax and penalty against assessee but value of one property was sufficient to clear outstanding demand against assessee and company in which assessee was director had opted under Direct Tax Vivad se Vishwas Act, 2020, in order to achieve real purpose of said scheme and in interest of justice, attachment over one property would be lifted to deposit amount of tax payable under said scheme

from www.taxmann.com Latest Case Laws https://ift.tt/3cQHbvt

Benefit of RFCTLARR Act cannot be extended to land acquired under NHA Act; compensation was liable to tax: ITAT

INCOME TAX : Land of assessee was compulsorily acquired by Government under the National Highway Act, 1956 and assessee claimed exemption from long term capital gains arising from compensation received under Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act).

from www.taxmann.com Latest Case Laws https://ift.tt/2S3so9t

Reassessment was justified as matter regarding taxability of JDA is to be decided after verification

INCOME TAX : Where assessee, owner of land, entered into a JDA with a developer in financial year 2013-14 and offered LTCG from same in assessment year 2016-17 and AO issued reopening notice on ground that Metropolitan Development Authority approval for building was obtained in financial year 2013-14 itself, thus, LTCG was taxable in assessment year 2014-15, since return of income for assessment year 2014-15 was not scrutinized at all impugned reopening notice was justified

from www.taxmann.com Latest Case Laws https://ift.tt/35yisYR

Booking flat which yet to be constructed under a housing project is eligible for sec. 54 relief: ITAT

INCOME TAX: Where assessee paid amount of sale consideration received from sale of a residential house for purchase of another residential property prior to due date of filing of return of income under section 139(4), his claim for exemption under section 54 was to be allowed

from www.taxmann.com Latest Case Laws https://ift.tt/3vtLbIF

Sec. 68 additions justified as assessee neither obtained confirmation nor produced creditors for cross-examination

INCOME TAX : Where assessee took loan from an entity, however, failed to produce any confirmation from such entity or produce its owner in person for cross-examination and also failed to produce any document to establish identity of such creditor or genuineness of alleged loan transaction, impugned addition made under section 68 in respect of such loan amount was justified

from www.taxmann.com Latest Case Laws https://ift.tt/3wubFLz

Govt. to ease registration process for MSMEs; only PAN and Aadhaar card would be required for regist

The Minister for Road Transport amp; Highways and MSME, Shri Nitin Gadkari has announced simplification of process for registration of Micro, Small and Medium Enterprises. Now only PAN and Aadhaar will be required for registration of MSMEs. After getting registered, the MSME unit will be getting priority and finance, he added. He assured full support of the MSME Ministry, and also expressed hope that banks and NBFCs will also provide full support to small businesses.

from taxmann.com News https://ift.tt/3q1MltX

Presence of several other manufacturers in relevant market of mechanical seals rules out abuse of dominance by OP

COMPETITION ACT : Where apart from OP, there were other mechanical seals manufacturers in India, OP was not dominant in relevant market and, therefore, no case was made out against OP for contravention of provisions of section 4

from www.taxmann.com Latest Case Laws https://ift.tt/2S50HgH

Reassessment was unjustified as matter regarding taxability of JDA is to be decided after verification

INCOME TAX : Where assessee, owner of land, entered into a JDA with a developer in financial year 2013-14 and offered LTCG from same in assessment year 2016-17 and AO issued reopening notice on ground that Metropolitan Development Authority approval for building was obtained in financial year 2013-14 itself, thus, LTCG was taxable in assessment year 2014-15, since return of income for assessment year 2014-15 was not scrutinized at all impugned reopening notice was justified

from www.taxmann.com Latest Case Laws https://ift.tt/3zzp72v

Sec. 68 additions justified as assessee neither obtained confirmation nor produce creditors for cross-examination

INCOME TAX : Where assessee took loan from an entity, however, failed to produce any confirmation from such entity or produce its owner in person for cross-examination and also failed to produce any document to establish identity of such creditor or genuineness of alleged loan transaction, impugned addition made under section 68 in respect of such loan amount was justified

from www.taxmann.com Latest Case Laws https://ift.tt/3wtrMsN

Penalty of Rs. 1 Cr imposed on Care Rating Ltd. for failing to monitor rating of Rcom was excessive and harsh: SAT

COMPANY LAW/SEBI : Credit rating provided by a Credit Rating Agency (CRA) becomes one of main criteria for an investor to make an investment. Ratings cannot be a subjective opinion and cannot be based solely on information provided by client but has to be based on a scientific analysis based on independent professional judgment considering financials and other performances of Company, etc.

from www.taxmann.com Latest Case Laws https://ift.tt/3zuk1Vm

Revenue can’t turn down request for personal hearing if Act itself makes provision for personal hearing: HC

INCOME-TAX: Where assessee claimed that impugned assessment order and consequential notice of demand and notice for penalty proceedings issued to it are flawed as they are contrary to section 144B and a specific request for personal hearing was made by assessee, since statute itself makes provision for grant of personal hearing, revenue cannot veer away from same and accordingly impugned assessment order and penalty proceedings were set aside and revenue will grant personal hearing to assessee.

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315332/revenue-can’t-turn-down-request-for-personal-hearing-if-act-itself-makes-provision-for-personal-hearing-hc.aspx

Assessment Order passed on or after 01-04-2021 must be in accordance with provisions of Sec. 144B: Delhi HC

INCOME TAX : After 1-4-2021, assessment order can only be passed in consonance with provisions of Section 144B; assessment order dated 15-4-2021 passed by revenue under section 143(3), read with Sections 143(3A) and 143(3B) relating to assessment year 2018-19 was set aside

from www.taxmann.com Latest Case Laws https://ift.tt/35r4RCy

Investigation wing wasn’t empowered to make reference to DVO before 1-4-2017: ITAT

INCOME TAX : Where pursuant to search conducted upon assessee DDIT (Investigation) not being satisfied with value of immovable properties shown by assessee made reference to DVO on 11-7-2014 and on basis of his report made certain addition to income of assessee, in view of fact that DDIT(Inv.) got empowered to make reference to DVO under section 132(9D) only after 1-4-2017 by an amendment by Finance Act, 2017, impugned reference to DVO was unlawful

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198285/investigation-wing-wasn’t-empowered-to-make-reference-to-dvo-before-1-4-2017-itat.aspx

National Faceless Appeal Centre is bound to follow decision of HC having jurisdiction over AO: Agra ITAT

INCOME TAX : Though Centralized NFAC has been created by Notification by CBDT, it should be ensured that whenever any appellate order is passed by NFAC as per Notification either by way of draft or Final appellate order, then decision of jurisdictional High Court having jurisdiction over Assessing Officer should be followed and applied by NFAC. Merely because there is some conflicting decision of non-jurisdictional High Court, relief should not be refused to assessee

from www.taxmann.com Latest Case Laws https://ift.tt/3wuEpny

Contribution to SPV as directed by SC so as to continue business activities are allowable as deduction: ITAT

INCOME TAX : Where assessee owned mining lease and Contributed 15 per cent of sale proceeds to SPV account, by virtue of directions of Supreme Court, as a precondition to resume mining operations contribution towards SPV was a requirement to be incurred to continue its business activities and, these payments did not fall within category of penalty within ambit of Explanation to section 37(1)

from www.taxmann.com Latest Case Laws https://ift.tt/35obzsW

Booking flat which yet to be constructed under a housing project is eligible for sec. 54F relief: ITAT

INCOME TAX: Where assessee paid amount of sale consideration received from sale of a residential house for purchase of another residential property prior to due date of filing of return of income under section 139(4), his claim for exemption under section 54 was to be allowed

from www.taxmann.com Latest Case Laws https://ift.tt/3guzj5a

Claim of GTA credit can't be denied without considering the evidence produced by assessee: Madras HC

EXCISE/ST/VAT : Where assessee was engaged in manufacture of cements and Adjudicating Authority vide e-mail dated 21-12-2020 called upon Jurisdictional Range Officer to verify claim of assessee in respect of GTA credit and Range Officer sent a communication dated 29-12-2020 calling upon assessee to furnish details sought for and assessee on very next day,

from www.taxmann.com Latest Case Laws https://ift.tt/3wvOctv

SAT reduces period of restraint and penalty as appellant had entered into minuscule orders which looked manipulative

COMPANY LAW/SEBI : Where appellants had entered into miniscule orders which looked manipulative and pattern of appellant's trading had been of market manipulating nature, same were violative of provisions of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulation, 2003, however, period of 5 years restraint and amount of penalties imposed on appellants were harsh and disproportionate and same were to be reduced

from www.taxmann.com Latest Case Laws https://ift.tt/3vt5shH

National Faceless Appeal Center is bound to follow decision of HC having jurisdiction over AO: Agra ITAT

INCOME TAX : Though Centralized NFAC has been created by Notification by CBDT, it should be ensured that whenever any appellate order is passed by NFAC as per Notification either by way of draft or Final appellate order, then decision of jurisdictional High Court having jurisdiction over Assessing Officer should be followed and applied by NFAC. Merely because there is some conflicting decision of non-jurisdictional High Court, relief should not be refused to assessee

from www.taxmann.com Latest Case Laws https://ift.tt/35mGFkL

Section 26(1) doesn’t mention about issuance of notice to any party before formation of an opinion by CCI: HC

COMPETITION LAW : An order under section 26(1) passed by Commission is an 'administrative direction' to one of its wings departmentally and without entering upon any adjudicatory process; and section 26(1) does not mention about issuance of any notice to any party before or at time of formation of an opinion by Commission on basis of information received by it

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315438/section-261-doesn’t-mention-about-issuance-of-notice-to-any-party-before-formation-of-an-opinion-by-cci-hc.aspx

Initiation of Anti-Dumping investigation on Imports of Solar Cells from China etc. challenged before Delhi HC, notice issued to Govt.

EXCISE/ST/VAT : Where assessee filed writ petition challenging notification dated 15-5-2021, issued by respondent no. 2, for initiating anti-dumping investigation in respect of imports of solar cells, whether or not assembled into modules/panels, originating in or exported from China PR, Thailand and Vietnam, notice was issued to revenue and matter was listed on 19-7-2021

from www.taxmann.com Latest Case Laws https://ift.tt/3gz0Pgx

Assessee cannot adjust tax paid under IDS 2016 with tax payable if his application was rejected subsequently

INCOME TAX : Where assessee declared an undisclosed income of certain amount under Income Declaration Scheme, 2016 and paid two instalments of tax but failed to pay third and last instalment as he was assessted, under a criminal offence and, therefore, revenue rejected its application under disclosure scheme, since neither amount of tax under two instalments was recovered illegally from assessee nor tax was paid under mistake of law by assessee and this was a case of default by assessee,

from www.taxmann.com Latest Case Laws https://ift.tt/3xrzSSX

Forms 15CA/15CB can be filed manually with authorized dealers till June 30, 2021: CBDT

In view of difficulties faced by taxpayers in electronic filing of Income Tax Forms 15CA/15CB on the new e-filing portal www.incometax.gov.in. The Central Board of Direct Taxes (CBDT) has decided that taxpayers can submit the aforesaid Forms in manual format to the authorized dealers till June 30, 2021. A facility will be provided on the e-filing portal to upload these forms at a later date

from taxmann.com News https://ift.tt/3vp4Z02

Reassessment to enhance disallowance on basis of existing material available before AO isn’t permissible: ITAT

NCOME TAX : Where the issue of exemption u/s 10(26BBB) has been extensively dealt with and the assessment was ultimately completed after making proportionate disallowance of claim of exemption and there is nothing to show that there was any failure in terms of first proviso to section 147 and there was no whisper of any fresh tangible material,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315429/reassessment-to-enhance-disallowance-on-basis-of-existing-material-available-before-ao-isn’t-permissible-itat.aspx

Govt. reviews FDI policy on insurance; hikes FDI in insurance Cos. to 74% under automatic route

The DIPP has reviewed the extant FDI policy on Insurance Sector and has allowed to raise FDI in insurance sector to 74% and 100% in insurance intermediaries. The Foreign investment upto 74% of the total paid-up equity of the Indian Insurance Co. shall be allowed on the automatic route subject to approval by IRDAI and compliance of the provisions of the Insurance Act, 1988

from taxmann.com News https://ift.tt/3xgvKVJ

Revised Form 36 to be filed by legal heir/revenue if assessee expired during proceedings before ITAT: Agra ITAT

INCOME TAX : It is mandatory to file revised form 36 after death of assessee, as appeals cannot continue for or against a dead person. However, despite knowing legal requirement by both sides, needful was not done in matter

from www.taxmann.com Latest Case Laws https://ift.tt/2Tqmks0

Sum which was offered as income can be claimed as deduction in subsequent year if same wasn’t received

INCOME TAX : Where CENVAT credit on passenger service fee (PSF)/user development fee (UDF) and advertisement fee was not actually received by assessee, but anticipating that it was entitled to such credit, assessee had offered them as income, assessee would be entitled to claim deduction of such amount in subsequent assessment year by way of reversal of entries

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198247/sum-which-was-offered-as-income-can-be-claimed-as-deduction-in-subsequent-year-if-same-wasn’t-received.aspx

RBI issues FAQs on clarifying Guidelines for Appointment of auditors for Banks, UCBs and NBFCs

The Reserve Bank of India (RBI) has recently issued Frequently Asked Questions (FAQs) on clarifying the Guidelines for Appointment of Statutory Central Auditors (SCAs) for Commercial Banks, UCBs and NBFCs. The above guidelines were issued in order to streamline the process of appointment of auditors across all the Regulated Entities and to avoid the conflict of interest in auditor’s appointment.

from taxmann.com News https://ift.tt/3wgFr6s

Delhi HC quashes assessment order and remitted matter back as assessee hadn’t been granted personal hearing

INCOME TAX : Where AO made addition to assessee's declared income under section 68 on account of unexplained unsecured loan, since it was found that assessee sought personal hearing before AO to establish genuineness of unsecured loan received by assessee which had not been granted by AO, assessee had been able to establish a prima facie case in its favour and thus impugned order is set aside to file of AO to consider assessee's reply

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315424/delhi-hc-quashes-assessment-order-and-remitted-matter-back-as-assessee-hadn’t-been-granted-personal-hearing.aspx

Swiss Bank deposits not taxable as exchange of info. prior to 01-04-2011 not covered by Article 26 : Delhi ITAT

INCOME TAX : Where Swiss Authorities had not provided any information to Revenue Authorities in India about assessee's bank account with HSBC, Geneva, Switzerland for assessment years i.e., A.Ys. 2006-2007 to 2011-2012 as such information could be provided as per Article 26 only from 1-4-2021, i.e., from Financial Year 2011-12, it could be said that there was no incriminating material available on record before Revenue to make addition,

from www.taxmann.com Latest Case Laws https://ift.tt/35ayw2F

Enforcement Directorate issues show Cause Notice to Crypto Exchange ‘WazirX’

One of the renowned Crypto Exchanges WazirX, an Indian cryptocurrency exchange may face a legal battle as the Enforcement Directorate has issued a show-cause notice for contravention of the Foreign Exchange Management Act 1999.

from taxmann.com News https://www.taxmann.com/research/direct-tax-laws/top-story/222330000000021406/enforcement-directorate-issues-show-cause-notice-to-crypto-exchange-‘wazirx’.aspx

Revenue was unfair in giving only 5 days to file objections if it has time till 30-06-2021 to pass final order: HC

INCOME TAX : Where show-cause notice-cum-draft assessment order calling upon assessee to file its objections qua same were issued and request for accommodation was made by assessee on 27-4-2021, wherein a reference was made to CBDT circular dated 24-4-2021, whereby, limitation for passing assessment order had been extended till 30-6-2021, impugned assessment order,

from www.taxmann.com Latest Case Laws https://ift.tt/3gsxy7i

Swiss Bank deposits not taxable as exchange of info. prior to 01-04-2011 not covered by Article 26

INCOME TAX : Where Swiss Authorities had not provided any information to Revenue Authorities in India about assessee's bank account with HSBC, Geneva, Switzerland for assessment years i.e., A.Ys. 2006-2007 to 2011-2012 as such information could be provided as per Article 26 only from 1-4-2021, i.e., from Financial Year 2011-12, it could be said that there was no incriminating material available on record before Revenue to make addition,

from www.taxmann.com Latest Case Laws https://ift.tt/3gbFMl6

HC remanded matter as ITAT heard matter ex parte without properly adverting to relevant facts

INCOME TAX : Where Tribunal without adverting to fact that assessee 'S' had expired and his son being sole legal representative of his father had filed his return of income and was pursuing matter, heard matter ex parte without considering letter signed by son seeking adjournment on ground that there was no power of attorney of 'S', matter was to be remanded back to Tribunal for fresh consideration in accordance with law

from www.taxmann.com Latest Case Laws https://ift.tt/3wdp3DC

Single judge cannot declare sec. 206AA as violative of fundamental rights without recording any findings : HC

INCOME TAX : Where Single Judge had neither recorded a finding that parliament does not have legislative competence to enact section 206AA nor had recorded a finding that aforesaid provision was violative of fundamental rights, it could not have read down section 206AA and held that it was inapplicable to persons whose income was below taxable limit

from www.taxmann.com Latest Case Laws https://ift.tt/3zjudju

CBDT issues guidelines for compulsory selection of returns for Complete Scrutiny during FY 2021-22

The CBDT has issued guidelines for compulsory selection of returns for Complete Scrutiny during the financial year 2021-22. Income tax authorities are directed to select the cases based on these guidelines by 30-06-2021.

from taxmann.com News https://ift.tt/3zk3Bi8

CIT(E) to inform assessee as to what other approvals are required before rejecting Sec. 12AA application

INCOME TAX : Where assessee-trust engaged in imparting education is having approval from the Central Board of Secondary Education and it is also complying with the requirement of Right to Education Act, but Commissioner (E) observed that the assessee has not obtained any permission/approvals/affiliation for implementing its objects under various acts,

from www.taxmann.com Latest Case Laws https://ift.tt/3wd0ozc

Dept. is bound to consider request for personal hearing before passing Faceless Assessment Order : HC

INCOME TAX : Uses of word 'may" in section 144B(7)(vii) cannot absolve revenue from obligation cast upon it to consider request made for grant of personal hearing; where revenue served a show-cause notice-cum-draft assessment order on assessee proposing to vary income disclosed by assessee and thereafter without affording a personal hearing to assessee passed impugned assessment order, same was liable to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/2TkE4os

Sec. 153C notice justified if parcel and courier receipt of gold recovered from two persons pertained to assessee

INCOME TAX : Where during search conducted upon two persons at airport, parcel of gold of certain quantity was seized and documents in form of parcel and courier receipts recovered from them were pertained or related to assessee who was engaged in business of gold ornament, impugned notice under section 153C issued against assessee was justified

from www.taxmann.com Latest Case Laws https://ift.tt/3cw7ZRy

CIT(A) cannot invoke sec. 150 while directing transfer of case from one jurisdiction to another: ITAT

INCOME TAX : Where assessee filed return in Kolkata but Assessing Officer Kanpur initiated assessment proceedings, since notice itself indicated that address of assessee had been printed as Kolkata which had been ignored and substituted by Kanpur address of assessee in handwriting and all evidences such as copies of returns, Form 26AS, copies of intimations under section 142(3) and proof of change of address in PAN database proved that assessee had changed its address and department was already

from www.taxmann.com Latest Case Laws https://ift.tt/3pESL1T

No re-examination as cost of imported cars sold in bulk to related party can be lesser than cost to independent buyers purchasing customised cars in r

EXCISE/ST/VAT : Where Swedish car manufacturer sold cars to independent buyers at price 33% higher than price at which cars were imported by appellant-distributor, a related party, in view of fact that cars sold to independent buyers were different having additional customized security features as per buyer's requirements and those cars were sold in retail while appellant purchased in bulk, thus, causing price difference,

from www.taxmann.com Latest Case Laws https://ift.tt/2SlxrCn

NFRA issues Consultation Paper in order to enhance its engagement with stakeholders

After considering the various recommendations provided by the Technical Advisory Committee (TAC); the National Financial Reporting Authority (NFRA) has recently issued a consultation paper which focuses on enhancing its engagement with stakeholders. The paper covers the recommendation provided by the TAC in terms of formation of Stakeholders Advisory and Consultancy Groups, Fellowship Programs for Practitioners and Academics, NFRA’s Inspection policy, etc.

from taxmann.com News https://ift.tt/3v5Zd39

Section 153C notice issued without satisfaction note won’t vitiate subsequent proceedings done by issuing valid notice

INCOME TAX : Where section 153C notice was issued without compliance of statutory condition i.e., issuance of satisfaction note by IO prior to transfer of case to AO and revenue thereafter disallowed said notice and satisfaction notes were drawn up and it was only parallel and pursuant thereto that the impugned notice under section 153C was issued, the issuance of the invalid notice does not compromise the assessment proceedings as,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000315391/section-153c-notice-issued-without-satisfaction-note-won’t-vitiate-subsequent-proceedings-done-by-issuing-valid-notice.aspx

Civil Court has no jurisdiction to try suit apropos of SARFAESI proceedings due to statutory bar u/s 18 of RDDBI Act

FEMA amp; BANKING : Where due to non-payment of loan amount, account maintained by second and third respondents with petitioner bank was declared as non-performing assets and petitioner invoked provisions of SARFAESI Act and sold suit property, Civil Court had no jurisdiction to try suit filed by first respondent for bare injunction as against petitioner in view of statutory bar under section 18 of Recovery of Debts Due to Banks and Financial Institution Act, 1993

from www.taxmann.com Latest Case Laws https://ift.tt/3wgjeoQ

No withholding tax on commission paid to agents outside India for procuring orders: Agra ITAT

INCOME TAX : Where commissions were paid outside India to assessees agent for procuring orders for assessee and element of payment of commission was duly reflected in bills for that purpose, modus operandi of assessee was clear that assessee was recipient of income in India after deduction of commission by buyer made outside India. Thus, no income had been received or paid inside India, which attracted deduction of TDS in India and therefore, assessee would not be liable to deduct TDS in India

from www.taxmann.com Latest Case Laws https://ift.tt/35cOsBL

10% tolerance limit introduced under Sec. 50C is applicable retrospectively: Delhi ITAT

INCOME TAX : Amendment made in scheme of section 50C(1), by inserting third proviso thereto and by enhancing tolerance band for variations between stated sale consideration vis-à-vis stamp duty valuation from 5 per cent to 10 per cent are effective from date on which section 50C, itself was introduced, i.e 1-4-2003. In plain words, what is means is that even if valuation of a property, for purpose of stamp duty valuation, is 10 per cent more than stated sale consideration,

from www.taxmann.com Latest Case Laws https://ift.tt/3g2vNPe

HC granted stay against outstanding demand and directed release of refund without any adjustment

INCOME TAX : Where refund was due to petitioner#x1F;-assessee, pursuant to order giving effect passed by Assessing Officer on account of appeals preferred by petitioner being allowed by Tribunal, respondent authorities were required to process refund payable to petitioner and issue refund due at earliest

from www.taxmann.com Latest Case Laws https://ift.tt/2TU306V

Provision for ascertain liability towards wage arrears is allowable as deduction in year in which it is made

INCOME TAX : Where provision for wage arrears made by assessee company was an ascertained liability, same was to be allowed as deduction for accounting year during which provision was made notwithstanding fact that said provision was accounted on cash basis

from www.taxmann.com Latest Case Laws https://ift.tt/3ghaQim

Order of disqualification of director by RoC without prior notice to the petitioner was illegal

COMPANIES ACT: Where no notice was given to petitioner before disqualifying him as Director of company, impugned order passed by Registrar of Companies disqualifying petitioner as Director of company under section 164(2) (a) was illegal and same was to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/3w2pVLt

Reassessment on basis of info. that assessee claimed LTCG on selling share of shell co. is valid

INCOME TAX: Where reopening notice was issued against assessee on ground that an information was received from DDIT (Investigation) that assessee had sold shares of a shell company held by it and, thus, exemption of long term capital gain claimed by it from same was bogus, since said information was relevant, specific and reliable and it was not a case of mere change of opinion from same facts as were earlier available on record but Assessing Officer was acting on fresh information,

from www.taxmann.com Latest Case Laws https://ift.tt/3v1wSej

Order of disqualification of director by RoC without notice to petitioner was illegal

COMPANIES ACT: Where no notice was given to petitioner before disqualifying him as Director of company, impugned order passed by Registrar of Companies disqualifying petitioner as Director of company under section 164(2) (a) was illegal and same was to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/2T2rzxT

CCI imposes cease and desist order against FPBAI President for active role in formulating restrictive trade practice

COMPETITION LAW : Where advisories from FPBAI a federation of publishers, booksellers and subscription agents in India indirectly limited and controlled supply of books and journals by directing members to refrain from participating in procurement advertisements which had conditions not in accord with conditions expected by FPBAI restrictive trade practices stood established against FPBAI,

from www.taxmann.com Latest Case Laws https://ift.tt/3gaoaoC

ITC allowed on club membership if used in relation to promoting trade : CESTAT Bangalore

EXCISE/ST/VAT : Where appellant had taken General Insurance Services in relation to insurance for safeguarding assets, building and property and employees' health and life, however, had not been able to bifurcate Insurance Service availed on assets of company and on lives of persons working in said company, cenvat credit on General Insurance Services was to be denied

from www.taxmann.com Latest Case Laws https://ift.tt/2T6df7q

Banks can’t cite RBI’s 2018 circular to warn customers against dealing in Cryptocurrencies, as it wa

RBI on May 31, 2021, has issued a clarification that the RBI circular dated 6th April 2018 ‘2018 Circular’ to ban cryptocurrencies wasn’t valid as it had been struck down by the Apex Court last year. ‘2018 Circular’ directed lenders to stop dealing in virtual currencies.

from taxmann.com News https://www.taxmann.com/research/direct-tax-laws/top-story/222330000000021402/banks-can’t-cite-rbi’s-2018-circular-to-warn-customers-against-dealing-in-cryptocurrencies-as-it-was-quashed-by-sc.aspx

PMLAT orders status quo of property attached under PMLA till next date of hearing

FEMA amp; BANKING : Where appellant had been served with eviction notice under section 8(4) directing appellant to vacate and handover peaceful possession of property attached under PMLA, since property in question was hypothecated to IBHFL and was also mortgaged to IDBI parties were directed to maintain status quo till next hearing and properties would remain in possession of appellant subject to condition that attachment would continue

from www.taxmann.com Latest Case Laws https://ift.tt/2TE4q56

Dep. is allowable on Pamp;M even if same wasn't put to use but was installed and made ready to use: ITAT

INCOME TAX : Section 14A cannot be invoked, where no exempt income was earned by assessee in relevant assessment year

from www.taxmann.com Latest Case Laws https://ift.tt/3w0W4To

HC directs SetCom to pass order if proceedings before it were concluded as claimed by assessee

INCOME TAX : Where Petitioner prayed for issuance of formal order under section 245D(4) on ground that proceedings before Settlement Commission stood completed and only formal order had not been pronounced, Settlement Commission was to take a decision whether such facts were correct or not and if they were found to be correct, it may proceed to pass/issue appropriate formal orders

from www.taxmann.com Latest Case Laws https://ift.tt/3vYQMHX

AO can’t make ad hoc additions on account of interest exp. on car used for personal purpose without assigning reasons

INCOME TAX: Where assessee had carried out substantial expansion in existing unit immediately on completion of first five years and duly complied with conditions laid down in clause (ix) sub-section 8 of section 80-IC, it will be entitled for deduction during year under assessment

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314936/ao-can’t-make-ad-hoc-additions-on-account-of-interest-exp-on-car-used-for-personal-purpose-without-assigning-reasons.aspx

Writ admitted to decide whether notice under Black Money Act is required to be issued within 30 days from end of FY

INCOME TAX/BLACK MONEY: Where assessee challenged show-cause notice issued under Section 10(1) of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 and the consequent assessment order on ground that Assessing Officer was required to issue a show cause notice to assessee, within thirty days from the end of financial year, in which he became aware of foreign assets/foreign income, notice was to be issued and matter was to be listed on 07/09/2021

from www.taxmann.com Latest Case Laws https://ift.tt/2TJpRlr

No service tax liability on take away foods: Madras HC

EXCISE/ST/VAT: Provision of food and drink to be taken-away in parcels by restaurants tantamount to sale of food and drink and does not attract service tax under Finance Act, 1994

from www.taxmann.com Latest Case Laws https://ift.tt/3cgCFG7

Amendment by FA 2012 to include HUF within scope of Sec. 54B relief is clarificatory in nature: ITAT

INCOME TAX : Where assessee HUF within two years of sale of agricultural land, had invested amount and purchase of land in accordance with requirement of section 54B it would be entitled to benefit of section 54B.

from www.taxmann.com Latest Case Laws https://ift.tt/3cjvey9

Sum paid for marketing support services to facilitate sale of products is allowable exp.: HC

INCOME TAX : Where assessee company had made provision towards warranty of certain amount based on methodology adopted by company from whom it had taken over business and said company had substantial experience in such business and said provision was made based on machine months which was a scientific method, impugned provision towards warranty was to be allowed

from www.taxmann.com Latest Case Laws https://ift.tt/3vQm2Jg

HC orders dispensing of meeting of shareholders of amalgamating Cos. as shareholders of both Cos consented to scheme

COMPANY LAW : Where transferor company was wholly-owned subsidiary of transferee company and all shareholders of both companies had provided their consent to scheme of amalgamation, meeting of shareholders was to be dispensed with

from www.taxmann.com Latest Case Laws https://ift.tt/3fPwATw

ITAT to launch e-filing portal; Delhi Zone would be effective from 21-06-2021

The Income Tax Appellate Tribunal (ITAT) has announced that it is going to launch e-Filing Portal for online proceedings of court. e-Filing Portal shall be initially soft-commissioned at Delhi Zone Headquarter with effect from 21st June, 2021 and would be gradually rolled out at all other Zonal Headquarters and other subordinate Benches across the country within a period of 4 weeks thereafter.

from taxmann.com News https://ift.tt/3clFXIl

No amount towards transportation cost is required to be included in value of remnant ATF: CESTAT

EXCISE/ST/VAT : Aviation Turbine Fuel (ATF) may be filled by aircrafts at foreign destination airports to be consumed on return journey to India and at time of arrival of such international flights into India, aircrafts may be flown on a domestic route, for which airlines are required to discharge customs duty liability on ATF that is left over in tank, to be used for domestic sector; no amount towards transportation cost is required to be included in value of remnant ATF

from www.taxmann.com Latest Case Laws https://ift.tt/3pkmugs

Amendment by FA 2013 to include HUF within scope of Sec. 54B relief is clarificatory in nature: ITAT

INCOME TAX : Where assessee HUF within two years of sale of agricultural land, had invested amount and purchase of land in accordance with requirement of section 54B it would be entitled to benefit of section 54B.

from www.taxmann.com Latest Case Laws https://ift.tt/3g7nvEy

Reassessment is valid if AO did an independent inquiry after receiving info. that Co. received bogus purchase: Guj. HC

INCOME TAX : Where AO received an information from ITO that during scrutiny assessment in case of an entity it was found that said entity in connivance with several other entities provided accommodation entries through bogus billing for purchases to assessee and AO after making independent inquiry and application of mind issued reopening notice against assessee, impugned reopening notice issued against assessee whose return was accepted without scrutiny was justified

from www.taxmann.com Latest Case Laws https://ift.tt/3fNKYeY

SAT upholds SEBI's order of disgorgement of illegal gains made by promoter who traded on basis of UPSI of target - Co.

COMPANY LAW/SEBI : Where appellant who was MD of FDSL had substantial influence on management of target company 'R' and had disposed of shares of 'R' held by FDSL when he was privy to unpublished price sensitive information, order of SEBI of disgorgement of illegal gains made by appellant and FDSL from appellant alone when FDSL had gone under CIRP did not suffer from legal error

from www.taxmann.com Latest Case Laws https://ift.tt/3fRIhcq

Consultancy fees paid for studying amp; preparing a strategy to reduce cost of production is eligible for deduction: HC

INCOME TAX : Where Assessing Officer made disallowance under section 40(a)(ia) on account of provisions made by assessee towards commission payment to agents on which no TDS was deducted, since revenue had not made such disallowance of provisions made by assessee in previous as well as subsequent assessment years, following same, impugned disallowance made during relevant assessment year was also to be deleted

from www.taxmann.com Latest Case Laws https://ift.tt/34JE0Bt

HC directs CCI to allow petitioner to advance his oral submissions before CCI u/s 19 of the Competition Act, 2002

COMPETITION LAW : Where petitioner/informant sought direction to CCI to allow petitioner to advance oral submissions in his application filed before CCI under section 19, petitioner was permitted to submit his oral submissions

from www.taxmann.com Latest Case Laws https://ift.tt/3fNE5dn

RBI keeps repo rate unchanged at 4.0%

The RBI has decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4.0 per cent. Consequently, the reverse repo rate under the LAF remains unchanged at 3.35 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 4.25 per cent.

from taxmann.com News https://ift.tt/3fPDZ53

RBI Governor’s Statement on second wave of COVID-19

The RBI has issued Governor’s Statement on second wave of COVID-19 wherein provision related to Assessment of Growth and Inflation, Liquidity and Financial Market Guidance, Additional Measures, On-tap Liquidity Window for Contact-intensive Sectors, Special Liquidity Facility to SIDBI and so on have been discussed.

from taxmann.com News https://www.taxmann.com/research/direct-tax-laws/top-story/222330000000021398/rbi-governor’s-statement-on-second-wave-of-covid-19.aspx

Redemption of credit card reward point is a taxable income: US Court

In an interesting ruling, the United States Tax Court held that the redemption of credit card reward points, which are earned from buying ‘cash equivalents’, shall be liable to tax. The Court held that reward received in connection with the purchase of gift card constitutes rebate. However, buying money order and reloading cash into debit cards is nothing other than cash transfers.

from taxmann.com News https://ift.tt/3fOBQqx

Petitioner’s plea seeking direction to CCI to allow oral submission before Tribunal u/s 19 was to be allowed: HC

COMPETITION LAW : Where petitioner/informant sought direction to CCI to allow petitioner to advance oral submissions in his application filed before CCI under section 19, petitioner was permitted to submit his oral submissions

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314727/petitioner’s-plea-seeking-direction-to-cci-to-allow-oral-submission-before-tribunal-us-19-was-to-be-allowed-hc.aspx

Delhi HC quashes faceless assessment order as no show cause notice-cum-draft assessment order was served

INCOME TAX : Where no show cause notice cum draft assessment was served on assessee in Faceless Assessment proceedings, impugned assessment order and notice issued under Section 156 and Section 270A read with Section 274 were to be set aside

from www.taxmann.com Latest Case Laws https://ift.tt/3phNNIb

Matter remanded to AA for afresh adjudication as there was delay of 2 yrs in verdict for FERA violations

FEMA, BANKING amp; INSURANCE : Where appellant banking company was guilty of violating provisions of FERA and adjudicating authority imposed penalty upon appellant for such violations, however, there was delay of more than two years in pronouncement of judgment by Adjudicating Authority without any explanation for undue delay in delivering order, matter was to be remanded to Adjudicating Authority for deciding it afresh in accordance with law

from www.taxmann.com Latest Case Laws https://ift.tt/3pcnRO8

SC directs Govt. to fill up vacancies of Chairman, NCLAT and President of NCLT within two months

COMPANY LAW: Supreme Court directs Government to fill up vacancies of Chairman, NCLAT and President of NCLT within two months

from www.taxmann.com Latest Case Laws https://ift.tt/3uIqWGQ

Mere existence of dominance bereft of any abusive conduct couldn’t be held to be basis to order investigation: CCI

COMPETITION LAW : Where OP1 being a largest port owner in India proposed a resolution plan for acquisition of OP2-Port which was approved by OP3 Resolution Professional and according to informant same would 'enhance and substantiate' OP1's dominant position in port sector which would adversely affect interest of competitors, since, there were no evidence of abusive conduct by OP1, mere existence of dominance bereft of any abusive conduct, could not be held to be basis to order an investigation

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000314291/mere-existence-of-dominance-bereft-of-any-abusive-conduct-couldn’t-be-held-to-be-basis-to-order-investigation-cci.aspx

HC rejects application for condonation of delay of more than 365 days in filing of Form 10B

INCOME TAX : Where Form No. 10B was filed by assessee after lapse of more than 365 days of due date of filing of return of income, application for condonation of delay was to be rejected, however, having regard to mandate of section 119(2)(b), assessee may approach CBDT, seeking a special order to Commissioner (Exemptions), to condone delay in filing Form No. 10B and thereafter to deal with said claim on merits in accordance with law

from www.taxmann.com Latest Case Laws https://ift.tt/3vLwXno

SetCom can undertake any matter related to case which was not covered by application filed by assessee: HC

INCOME TAX : Where assessee filed application under section 245C to Settlement Commission and brought only case pursuant to notice under section 153A issued to it and did not expressly refer to notice and penalty proceedings for violation of section 269ST pending against it Since penalty proceedings were also initiated in context of search,

from www.taxmann.com Latest Case Laws https://ift.tt/3uJ3OIq

ROC’s order disqualifying petitioner director u/s 164(2)(a) without issuing notice was to be set aside: HC

COMPANY LAW : Where RoC by impugned order disqualified petitioner as Director of Company under section 164(2)(a) on ground that he had not submitted financial statements of company for three consecutive financial years but no notice was given to petitioner before such disqualification, impugned order passed by RoC was to be set aside

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198350/roc’s-order-disqualifying-petitioner-director-us-1642a-without-issuing-notice-was-to-be-set-aside-hc.aspx

ICSI extends due date of ‘ECSIN and UDIN’ Amnesty Scheme, 2021 till June 15, 2021

Keeping in view the persisting situations in the country due to COVID 19 and various practical difficulties being faced by the members, the Institute has decided to extend the ICSI UDIN Amnesty Scheme, 2021 and ICSI ECSIN Amnesty Scheme, 2021 till June 15, 2021.

from taxmann.com News https://www.taxmann.com/research/direct-tax-laws/top-story/222330000000021389/icsi-extends-due-date-of-‘ecsin-and-udin’-amnesty-scheme-2021-till-june-15-2021.aspx

No disallowance if interest amount was actually paid and not converted into loan or borrowing: ITAT

INCOME TAX : Where interest amount had actually been paid by assessee through overdraft/cash credit account and same had not been converted into loan or borrowing (or) loan or advance, disallowance of interest under section 43B(d)/(e) read with Explanation 3D could not have been made

from www.taxmann.com Latest Case Laws https://ift.tt/3caTl1W

HC disposed of writ with request to Commissioner to effect necessary correction of outstanding demand shown online

INCOME TAX : Where assessee sought quashing of impugned recovery notices and direction to respondent to delete demand raised on account of short payment, in view of fact that outstanding demand was under verification, writ application was to be disposed of with a request to Commissioner to effect necessary correction/deletion of outstanding demand shown online

from www.taxmann.com Latest Case Laws https://ift.tt/3paR641

Onus is on assessee to prove that exp. of unit located at various location were incurred exclusively for its business

INCOME TAX : Where assessee had claimed sales promotion expenses in its book of accounts as business expenses, however, had not brought on record working of sales promotion expenses, matter was to be remanded back for de novo consideration, as primary onus was on assessee to prove that they were genuine and bonafide expenses which were incurred wholly and exclusively for purpose of business of assessee, thus satisfying mandate of section 37(1)

from www.taxmann.com Latest Case Laws https://ift.tt/3pcFrBx

MCA issues list of e-forms qualified for waiver of additional fee

The MCA has provided a list of forms providing waiver of additional fee as per Circular no. 06/2021 and 07/2021. As a result, the Companies and LLPs can file e- forms without payment of any additional fees where it has been due for filing for a specified period of time.

from taxmann.com News https://ift.tt/3cqVKpx

Concurrent findings of facts couldn’t have been interfered with in absence of any perversity being demonstrated: HC

INCOME TAX : Where assessee entered into construction agreements with Karnataka Housing Board and Tribunal as well as Commissioner (Appeals), recorded fact that payments made to Karnataka Board for rendering of services in connection with construction of Engineering and Polytechnic college Buildings in State of Karnataka were liable for tax deduction at source under section 194J and not as work contract under section 194C,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000198505/concurrent-findings-of-facts-couldn’t-have-been-interfered-with-in-absence-of-any-perversity-being-demonstrated-hc.aspx

Prior approval of CIT is mandatory irrespective of rank of AO reopening assessment after 4 year: ITAT

INCOME TAX : Once reopening is after expiry of four years from end of assessment year and original assessment was completed under section 143(3), then irrespective of rank of Assessing Officer who has reopened assessment it is mandatory condition that satisfaction of Pr. CCIT/CCIT/PCIT/CIT is required

from www.taxmann.com Latest Case Laws https://ift.tt/3cazFLs

No additions towards excess premium if assessee valued shares at FMV computed in accordance with Rule 11UA: ITAT

INCOME TAX : Where assessee issued shares at premium and received share capital of certain amount, since assessee had valued its shares at fair market value computed as per valuation certificate issued by its chartered accountant in accordance with rule 11UA(a) and no fault was found in method applied by assessee, impugned addition made under section 56(2)(viib) on account of such share capital received by assessee was unjustified

from www.taxmann.com Latest Case Laws https://ift.tt/3yRQXa5

HC orders release of accused on bail arrested for offense of cheating and forgery in inviting deposits

COMPANY LAW : Where complainant himself invested his money in investment company run by applicant, complainant could not say that he was not aware about volatility of money market and, therefore, applicant who was arrested for offence of cheating and forgery in inviting deposits was to be released on bail as co-accused had already been enlarged on bail

from www.taxmann.com Latest Case Laws https://ift.tt/3uEPWP6

Tribunal has no power to order for winding-up of company which name was struck off from register of Co.

COMPANY LAW : Tribunal has power to order for winding up of company, name of which was struck off from register of companies

from www.taxmann.com Latest Case Laws https://ift.tt/3fSRnEs